Core sector growth slows to 4% in January

India's core sector growth experienced a notable slowdown, registering a growth rate of 4% in January, down from the previous month. This deceleration is attributed to a decline in performance across seven of the eight key sectors, with energy-related segments being the most significant contributors to this downturn. The core sector, which includes industries such as coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity, serves as a crucial indicator of the economy's overall health. The sluggish growth raises concerns regarding the sustainability of economic recovery, as it comes amid ongoing challenges in the global economic landscape. Analysts suggest that the weaker performance in energy sectors, particularly, could have cascading effects on industrial output and economic momentum in the coming months. Policymakers will need to monitor these trends closely to address potential vulnerabilities within the economy and ensure that growth remains resilient in the face of external pressures.